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Decode.

Sir M. Lampson, (Feking).

30th June, 1927.

D.

8.50 p.m.

30th June, 1927.

K.

6.15 p.m.

30th June, 1927.

No. 1055. (R).

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My despatch No. 418, June 2nd, 1926.

His Majesty's Consul-General reports Canton

authorities have approached him with regard to

transfer of Chinese telegraph office Hongkong to

their control. In reply he sounded their emissary

on proposal to remove office from Hongkong to Chinese frontier as suggested in paragraph 3 of

despatch above mentioned. Emissary apparently welcomed suggestion but pressed for rapid decision.

Matter has been discussed with cable company's representative here who although of opinion that his company would prefer no change at present, privately concurs in our view that objections which have hitherto been made by the company have now lost much of their force. He points out however that if Chinese office is to be removed from Hongkong no special object is served by re-establish-

ing it on the frontier so far as concerns his company who can equally well work Hongkong end of line direct with Canton, but this seems a minor point for local consideration of Hongkong and Canton,

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